Market News

Former CEO Just Loaded up on Nikola Stock (NASDAQ:NKLA)

Story Highlights

A majority shareholder bought NKLA shares worth $17.4 million, infusing optimism in the company’s stock trajectory. However, supply chain issues, high input costs, and other operational setbacks remain an overhang on the company’s performance.

A top shareholder of Nikola Corporation (NKLA) purchased another three million shares of the heavy-duty commercial battery electric vehicle (BEV) maker. As per a regulatory filing, Trevor R. Milton, founder and former CEO of Nikola, bought NKLA stock at $5.8 per piece on August 24. The total consideration paid for the purchase was $17.4 million.

Notably, post the latest purchase, Trevor has 51,047,726 shares of Nikola held by him or his company M&M Residual LLC. Furthermore, the regulatory filing showed that his wife also owns 1,250,000 shares of Nikola as of date.

As per TipRanks Insider Trading Activity, Trevor, who is a more than 10% owner, had last purchased shares of Nikola in September 2020. Post this, he has been consistently selling NKLA stock through a series of both informative and uninformative sell trades. Interestingly, Trevor has a success rate of 75% on NKLA stock, with an average return of 20.39%.

TipRanks’ Insider Trading Activity Tool also provides a comprehensive list of daily insider transactions and shows which top corporate insiders are buying or selling shares of a publicly listed company. Interestingly, TipRanks also includes a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.

Is Nikola a Buy, Sell or Hold?

On TipRanks, NKLA stock has a Hold consensus rating based on four unanimous Holds. This means that analysts are not too confident of the stock’s trajectory. The average Nikola price forecast of $8.25 implies 38.7% upside potential to current levels. Meanwhile, the stock has lost nearly 42% so far this year.

Ending Thoughts

A majority shareholder buying more of a company’s stock always means there is good news ahead for the stock. For Trevor, the signing of the Inflation Reduction Act (IRA) into a law may have been a driver of optimism for the stock.

NKLA stock is up over 3% in pre-market trading when last checked. Notably, Nikola has plans for enhancing its hydrogen distribution network and is also pilot-testing its hydrogen fuel cell trucks. A Barrons’ report mentioned that companies in the hydrogen fuel segment may be beneficiaries of the IRA, boosting investor confidence.


Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More